This article is Part 2 of “Love After 65: 7 Financial Topics to Discuss with a Professional.”

Last week, we covered the first set of important financial conversations for couples in later life.

This week, we wrap up the series with the remaining topics, offering further guidance on how a professional can support smart, lasting decisions together.

Missed Part 1? Be sure to check it out for the full picture.

5. ESTATE PLANNING

Updating your will and beneficiary designations is central to ensuring your assets reach your intended heirs. Without proper planning, your estate may be distributed according to state laws, potentially leading to unintended consequences for your children.

To protect your loved ones and provide peace of mind, have open and honest conversations with your children about what will happen to your estate if you marry. Meeting with an estate-planning attorney to update your documents to align with your evolving wishes makes sense.

Additionally, getting to know your partner’s children and fostering open communication can help ease the apprehensions that are common among adult children in blended families.

6. INCOME TAXES

Marriage can affect your income taxes, sometimes resulting in a penalty or a bonus. Be sure to consult a tax professional.

Filing jointly usually saves on taxes, but in some cases, filing separately might be better, especially if there’s a significant income disparity. Calculate your taxes as single individuals, married filing jointly, and married filing separately to determine the best option.

Understanding the tax implications of marriage helps you make informed decisions and avoid surprises.

7. REAL ESTATE

When entering a new relationship in retirement, deciding how to handle real estate can significantly impact your financial future. Combining properties can streamline finances and reduce costs, but maintaining separate residences may help preserve financial independence, especially if one partner owns their home outright while the other has a mortgage.

Many older people who remarry choose to move into an existing home, and it will be important to plan for sharing of housing costs such as maintenance, taxes and insurance, which could be handled from a joint bank account.

Another option, The Living Apart Together model, is increasingly popular among seniors, allowing couples to keep their independence while enjoying companionship.

Discuss your real estate plans openly, considering lifestyle choices and financial implications. Whether you choose to blend properties or maintain separate homes, ensure your decisions support your long-term goals and wellbeing.

COMMUNICATION IS KEY

Open and honest communication is the foundation of any successful relationship, especially when it comes to finances. The “5 Cs” communication framework may be helpful: Clarify, Communicate, expect Choices, Check In regularly with trusted friends and advisers, and review long- and short-term Consequences of decisions made.

Finally, be cautious of “sweetheart scams,” where predators engage victims romantically, usually online or in a dating app, and then ask for money. Your caution and clear communication upfront can help protect both your heart and your wallet.

SEEK EXPERT GUIDANCE

You deserve this happiness!

In your excitement of newfound love, be sure to consult with a financial professional to help navigate this new chapter with confidence and financial security. They’ll help guide you through the intricacies of late-life romance from Social Security and income-tax implications to estate planning and healthcare considerations.

Disclaimer: The views, statements and opinions expressed herein are those of the adviser and not necessarily of Foundations or their affiliates. The content provided is for educational purposes only and includes information and statistical data obtained from third-party sources that Foundations deems reliable but in no way guarantees its accuracy or completeness. All third-party information and statistical data contained herein is subject to change without notice. No investment, legal or tax advice is provided. Always consult with a professional.